Aqueous polyurethane dispersions have been known as coating compositions for many years. U.S. Pat. No. 4,183,836 to Wolfe discloses such dispersions and the method of their preparation. The present invention is an improvement over the polyurethane dispersions of Wolfe. The dispersions of the present invention are based on C.sub.12 DDI, and coatings made from such dispersions have high tensile strength, high elongation, high 180 degree peel strength and low water absorption.